A month has gone by since the last earnings report for Fidelity National Information Services (FIS Quick QuoteFIS - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Fidelity National due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Fidelity National Information Services, Inc. before we dive into how investors and analysts have reacted as of late.

FIS Beats Q2 Earnings on Banking Solutions Strength, Cuts 2026 Outlook

Fidelity National reported second-quarter 2026 adjusted earnings per share (EPS) of $1.48, which beat the Zacks Consensus Estimate by 0.7%. The bottom line advanced 8.8% year over year.

Revenues amounted to $3.4 billion, which improved 29% year over year. The top line missed the consensus mark by 0.2%.

The quarterly earnings were driven by strong growth in the Banking Solutions segment and steady performance in the Capital Market Solutions segment, supported by recurring revenue growth, margin expansion and acquisition benefits. However, the upside was partly offset by a higher cost of revenues and increased selling, general and administrative expenses.

FIS’ Q2 Performance

The cost of revenues increased 32.4% year over year to $2.2 billion in the second quarter. SG&A expenses of $684 million rose 19.6% year over year. Net interest expenses of $200 million increased 81.8% from the prior-year quarter’s figure.

Adjusted EBITDA was $1.4 billion, up 35% year over year. Adjusted EBITDA margin increased 193 basis points year over year to 41.7%, primarily driven by acquisitions, a favorable business mix and cost savings initiatives.

Q2 Segmental Update of Fidelity National

Revenues from the Banking Solutions segment totaled $2.5 billion, increasing 44% year over year and matching the Zacks Consensus Estimate. The segmental results benefited from solid margin expansion. Adjusted EBITDA margin improved 179 bps year over year to 45.8%, supported by cost management and a favorable revenue mix.

The Capital Market Solutions segment’s revenues advanced 3.5% year over year to $810 million, marginally missing the Zacks Consensus Estimate by 0.2%. Strong recurring revenue growth benefited the metric. Adjusted EBITDA margin of 51.9% contracted 32 bps year over year.

The Corporate and Other segment recorded revenues of $84 million, down 26% year over year. Adjusted EBITDA loss was $147 million.

FIS’ Q2 Financial Update

Fidelity National exited the second quarter of 2026 with cash and cash equivalents of $744 million, up from $599 million as of 2025-end. Total assets of $44.1 billion increased from $33.5 billion at the end of 2025.

Long-term debt, excluding the current portion, amounted to $15.4 billion, up from $9.1 billion as of Dec. 31, 2025. The current portion of long-term debt totaled $1.5 billion. Short-term borrowings totaled $4.2 billion at the end of the reported quarter.

Total equity of $16 billion increased from $13.9 billion at 2025-end.

Fidelity National generated $493 million in net cash from operations, representing a 29.1% year-over-year increase. Adjusted free cash flow totaled $525 million, up 220% year over year.

FIS’ Share Repurchase & Dividend Update

The company returned $270 million to shareholders, including $42 million through share repurchases and $228 million in dividend payments.

FIS’ Key Expectations for Q3’26

Management forecasts revenues between $3.415 billion and $3.445 billion. Adjusted EBITDA is projected to be in the range of $1,460-$1,480 million. Adjusted EPS is estimated to be between $1.58 and $1.62.

FIS Updates 2026 Guidance

Revenues are now expected to be $13.63-$13.70 billion, down from the prior guidance of $13.77-$13.85 billion, implying 29-30% adjusted revenue growth.

Adjusted EBITDA is projected to be $5.73-$5.79 billion compared to the earlier outlook of $5.80-$5.86 billion. Adjusted EBITDA margin is anticipated to be in the range of 41.8-42.4% (previously 42.1-42.3%).

Adjusted EPS is forecast in the range of $6.15-$6.24, lowered from the prior guidance of $6.22-$6.32. The midpoint implies about 7.7% year-over-year growth from $5.75 reported in 2025.

Free cash flow guidance has been raised to $2.15-$2.25 billion from the previous $2.05-$2.15 billion. The company now expects free cash flow growth of 33-39% year over year.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Fidelity National has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Fidelity National has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Fidelity National belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Visa (V Quick QuoteV - Free Report) , has gained 2.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Visa reported revenues of $11.63 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $3.32 for the same period compares with $2.98 a year ago.

Visa is expected to post earnings of $3.43 per share for the current quarter, representing a year-over-year change of +15.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Visa. Also, the stock has a VGM Score of F.